Business owners often rely on their gut estimates when calculating the value of their companies. Their attachment to the business usually makes them overestimate that value. A value with no basis in complex data cannot form the basis for a long-term strategic business plan or an exit plan. Hire expert business valuation advisors to calculate …
An exit planning advisor should ease the experience of selling a business. They explain, initiate, and guide business owners throughout the planning process. They also help their clients understand that their own business and personal goals dictate the path to a successful exit. They meet with a business owner to gather information, establish their exit …
Business owners have several exit options. They may choose to pass their businesses to children or successors, sell to a third party that an M&A team has identified for them, pass the company to employees or the management team, or close the business by liquidating all its assets. Whatever your choice of exit option, your …
A business becomes successful by creating value for its owners, customers, and employees. As a small- or middle-market business owner, you define your company’s specific values. You may want to benefit your employees and the community and achieve personal and financial goals. Whatever your values include, you must define them clearly and in detail. It …
You want to sell your company and need to answer the all-important question: How much is my company worth? The company has emotional value for the founder; it also has a concrete, monetary value. Business valuations focus on determining monetary value. Knowing your company’s market value can be helpful with taxes, financing, disputes like divorce …
When another company or investor purchases your business, they are not just paying you for your tangible assets, contracts, inventory, etc. The purchase price also includes your loyal customer base, competitive advantage, reputation, and other intangible assets challenging to value and which can be grouped under the term goodwill. So, as an owner of a …
Most business owners have unrealistically high expectations when it comes to selling their businesses. When asked about their business value, they have a vague idea instead of a tangible number. Owners of small companies often do not even know the ballpark amount needed to fund their retirement after exiting the business or the steps that could …
For many businesses, the transition to new ownership is inevitable. However, most business owners fail to think about it until it’s too late. Even if the transition is 10 to 15 years down the line, it requires planning and preparation for smooth execution. Ownership transition types range from passing control to successors to selling your …
Common Mistakes Business Owners Make During Ownership Transitions Read More »
Every seller wants the highest price for their business, so the brand impacts what a buyer is willing to pay. If the brand doesn’t fully convey your company’s values, then it’s time for a refresh.
Developing an exit plan is vital to protect business value and avoid a worst-case scenario. An exit plan helps to build and protect the business value and control when and how you exit.
